چکیده انگلیسی

Small- and medium-sized enterprises (SMEs) make sizeable contributions to the economic success of nations. Research concerning the internationalization of SMEs is available in the context of developed economies but less is can be found dealing specifically with the entrepreneurial behavior and international expansion of SMEs in emerging markets such as India. This research extends the literature addressing the relationships surrounding the internationalization of SMEs in India as related to entrepreneurial behavior, firm resources, and commitment to internationalization. Entrepreneurial orientation, a commitment to internationalization, and the ability to leverage human capital influence the international success of Indian SMEs, based on the analysis of data collected from 150 Indian SMEs.

مقدمه انگلیسی

In developing and emerging economies, small and medium-sized enterprises (SMEs) play an important role as they represent a major source of employment and generate significant revenue and export earnings. SMEs now have access to new technology and their ability to embrace risk and uncertainty allows them to take advantage of their entrepreneurial and human capabilities, improving their ability to enter challenging new business environments. Existing empirical studies suggest that entrepreneurship influences superior firm performance in the developed economies (Luo et al., 2005). Much research exists focusing on understanding the practice of entrepreneurship in advanced economies (Luo et al., 2005 and McDougall and Oviatt, 2000). There is less research addressing the increasing role of entrepreneurial firms in emerging markets (Bruton et al., 2008, Luo et al., 2005 and Todd and Javalgi, 2007). This study focuses on filling this gap in response to the recommendation made by Zahra and George (2002), who propose the impact of entrepreneurial orientation, firm's resources (e.g., human capital) and commitment to internationalization on the international expansion firms should be extended beyond advanced economies.
When examining the entrepreneurship literature dealing with emerging markets, India has been the focus of only one study in the last past 15 years (e.g., Bruton et al., 2008). The purpose of this research is to extend the literature addressing the relationships surrounding the internationalization of SMEs in emerging markets such as India. The key research questions addressed in this study are follows: How does entrepreneurial orientation and management commitment affect the degree of internationalization of Indian SMEs? Does human capital matter? What is the impact of market turbulence on international activities? Addressing these questions is increasingly important as small and medium-sized businesses, particularly in an emerging market as found in India, develop competitive strategies for operating in a global environment. This article focuses on factors influencing the success of Indian SMEs as they attempt to expand internationally.
India is the focal country for this study for the following reasons: India's economy has experienced tremendous growth since liberalization efforts, beginning in the 1980s. In India, SMEs contribute 7 percent to gross domestic product (GDP), make up 34% of national exports, and account for 40% in the manufacturing sector (Venkataramany, 2008). While most countries put small entrepreneurial firms with less than 500 employees in the category of SMEs, in India these firms are small-scale industries (SSI).

نتیجه گیری انگلیسی

9.1. Managerial and theoretical implications
India, considered an emerging market, is playing an important role in the international marketplace. Focusing on India, this study offers several important managerial and research implications. From a research standpoint, results provide an interesting addition to the existing body of knowledge about the strategic importance of entrepreneurial orientation, management commitment to internationalization and human capital in explaining the internationalization efforts of SMEs in the emerging market of India. The hypothesis that human capital is positively related to the degree of internationalization of Indian SMEs is supported by the results of this study. Educational level and international experience were significant as predictors of the degree of internationalization of the firm. Researchers Johanson and Vahlne (1990), for example, point out that firms that have some experience in international markets will tend engage in more internationalization efforts.
The management commitment to internationalization is also positively related to the degree of internationalization of SMEs in India. Previous studies have indicated that management commitment to internationalize has a significant impact on export performance (Knight, 2001 and Kuivalainen et al., 2004). Owners/managers of SMEs who implement programs to foster positive attitude towards expanding internationally among employees and demonstrate the importance of thinking outside the domestic market will improve the probability of success and create a competitive advantage. In addition, Indian SMEs must leverage resources such as human capital for their international marketing strategy in order to seize enormous opportunities in the global market.
For Indian SMEs, there is a strong link between entrepreneurial orientation and the degree of internationalization. Once again, the findings support previous research on relationships between entrepreneurial orientation and international expansion (Autio et al., 2000 and Zucchella et al., 2007). The importance of the significant relationship between entrepreneurial orientation and degree of internationalization suggests that top management must foster entrepreneurial culture and international mindset throughout the organization.
In a study of ninety-eight U.S. international firms, Zahra and Garvis (2000) found that perceived characteristics of the international environment, in particular market turbulence/hostility, or in the case of Indian firms, governmental policy changes will significantly moderate the relationship between international corporate entrepreneurship and performance. Therefore, when market turbulence is high, firm entrepreneurship can positively affect firm performance. Our findings support this view.
The control variables the size and age of firm found to be significant in explaining the internationalization of Indian SMEs. This seems to suggest that entrepreneurial SMEs that are growing in size and have successfully established themselves in the marketplace over time are able to leverage the experience and knowledge obtained over time as they plan international expansion (Zhou, 2007). Williams (2008) notes as SMEs grow older they will acquire greater knowledge of how foreign markets operate. The control variable industry type was not significant, suggesting that regardless of the industry type, Indian SMEs seem to internationalize successfully due to entrepreneurial orientation.
9.2. Limitations and conclusions
Although the phenomenon of firm's internationalization attracts the attention of many scholars, they devote little effort to understanding the effects of internationalization of SMEs, especially SMEs in emerging markets.
This study makes three contributions. First, the study augments current research on internationalization by including SMEs in emerging markets such as India. The study complements the existing research stream. Second, this study validates the findings related to internationalization, previously examined in the context of western economies. Third, working with the empirical data, this research provides a foundation or framework through the identification of behavioral characteristics (e.g., risk taking) that impact international growth in India positively and gives a small or medium-sized firm operating in an emerging market a way to develop competitive advantage in a highly dynamic business environment. This study enhances existing theories since the findings of this research are extendable to include SMEs, in emerging economies.
Although this study offers a theoretical framework and empirical support of the complex relationship among entrepreneurship, firm capabilities and resources (e.g., human capital) and internationalization, an ambitious effort such as this is not without its limitations. One clear limitation of this study is that its cross-sectional nature implies that conclusions are tentative. The relationship between entrepreneurial activity and internationalization needs to be measured at different points or in a longitudinal framework. A second limitation relates to the constructs used in this study. For instance, the variable human capital used in this study does not capture all aspects of human capital. Therefore, different constructs suggested in the literature may be used in understanding the internationalization process of SMEs in emerging markets. Third, the moderator tested in this study is based on the literature.
However, other moderators (e.g., technological intensity, competitive intensity) may be considered. While this study focuses on only India, more research is needed to test the relationships among SMEs' internationalization, entrepreneurial behavior, and firm resources (international experience, human capital) using other emerging markets.
Finally, the degree of internationalization used in this study is a single construct. A multidimensional construct may be used to test the underlying relationships. Uncovering differences with regard to entrepreneurial orientation and management commitment to international expansion between Indian managers and their foreign counterparts would extend this research. This uncovering may lead to a better understanding of the factors that contribute to successful international undertakings.
Another extension of this study could be collecting longitudinal data in multiple emerging markets. As SMEs in emerging markets continue to expand internationally, we feel that there is clear opportunity to develop a broad array of models based on theoretical underpinnings toward a comprehensive understanding of entrepreneurial internationalization behavior of SMEs in emerging markets.